Latest News | MCFL Implements Rs 400-cr Ammonia Energy Improvement Project at Mangalore Urea Plant

New Delhi, Nov 4 (PTI) Mangalore Chemicals & Fertilizers Ltd (MCFL) on Friday said it has completed an ammonia energy improvement project at a capital cost of over Rs 400 crore.

MCFL -- a subsidiary of Zuari Agro Chemicals Ltd, an Adventz Group company -- said in a statement that it has successfully implemented the ammonia energy improvement project at its Mangalore plant and has attained energy efficiency at par with modern plants.

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"The project was implemented at a capital cost of over Rs 400 crore and is expected to deliver significant improvement to the bottom line," it added.

To implement this project, the plant, which produces urea and complex fertilisers, was shut down between June-September 2022.

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MCFL had converted its urea operation earlier from naphtha to gas based after the receipt of gas in December 2020.

As per the extant policies of the government for urea manufacturing companies, there is a mandate to reduce the energy requirement further from December 2025.

In the process, MCFL has converted the vintage plant to a highly energy efficient facility at par with modern plants to comply with the target energy norms.

Post commissioning, the ammonia production will increase by 25 per cent coupled with reduction in the energy consumption by about 10-12 per cent.

The operating margins are expected to improve further with reduction in the energy consumption and in the long run have a sustainable positive impact on the environment, it said.

T M Muralidharan, Chief Financial Officer, MCFL, said, "On account of shutdown for the project commissioning, there is negative financial impact for the quarter and half year ended September 30, 2022."

"However, with all the plant and production parameters in line with the new performance standards, the bottom line for the rest of the year is expected to show significant improvements," he added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)